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Open Access. Powered by Scholars. Published by Universities.®

Patricia A. McCoy

2004

Articles 1 - 2 of 2

Full-Text Articles in Law

Predatory Lending: What’S Wall Street Got To Do With It?, Dec 2003

Predatory Lending: What’S Wall Street Got To Do With It?,

Patricia A. McCoy

In this article, we examine the contention that the secondary market will exert sufficient market discipline to drive predatory home loan lenders from the subprime marketplace. Using a so‐called lemons model, we identify the potential risks that investors encounter if they buy securities backed by predatory home loans. We then explain how structured finance, deal provisions, pricing mechanisms, and legal protections shield investors from much of the risk that those loans entail.

While the secondary market does impose some discipline on the subprime home loan market, it is not enough to bring predatory lending to a halt. We provide ...


Predatory Lending Practices: Definition And Behavioral Implications Dec 2003

Predatory Lending Practices: Definition And Behavioral Implications

Patricia A. McCoy

No abstract provided.